U.S.-listed Chinese electric vehicle (EV) startups have embarked on a fundraising spree to expand their business, banking on bullish market sentiment over the prospects for new energy vehicles.

On Friday, New York Stock Exchange-listed Xpeng announced its completion of the sale of 55.2 million new American depositary shares (ADSs) to raise about $2.5 billion yuan, with the sale price nearly triple that of the company’s IPO stock price from August.

Proceeds from the deal will be used to develop smart electric cars, software, hardware and data technologies, expand sales channels, build a charging network and expand overseas markets, according to the company.

Xpeng’s fundraising came a day after domestic rival Nio unveiled similar plans to sell 60 million new ADSs with an option to increase it to 69 million if demand is strong. Nio, which is also listed on the New York Stock Exchange, has yet to decide on an offering price. But if the shares are sold at Thursday’s closing price of $45.22, the company would raise more than $3.1 billion from the follow-on offering.

Earlier this month, Li Auto, which went public on the Nasdaq in July, also said it would sell 47 million new ADSs and potentially 7 million more in an overallotment option to raise as much as $1.6 billion to bankroll the development of advanced technologies involving battery, charging and autonomous driving.

Shares of all three companies have risen sharply in recent months on bullishness about prospects for China’s new energy vehicle market.

Contact reporter Ding Yi (yiding@caixin.com)

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